Colombia is a free market economy with major commercial and investment ties to the United States, Canada and several European countries.

Transition from a highly regulated economy has been underway for more than 19 years. In 1990, the administration of President Cesar Gaviria initiated economic liberalization with tariff reductions, financial deregulation, privatization of state-owned enterprises and adoption of a more liberal foreign exchange rate. These policies eased import restrictions and opened most sectors to foreign investment.

For foreigners purchasing property in Colombia, all you need is your passport with a valid Tourist 60 day stamp. A tourist visa is obtained at the airport upon arrival in Colombia from most countries.

Investors are required to set up a company in Colombia and register the investment at the Central Bank (Banco de la República).

Foreigners that invest in Colombia may obtain an investor visa which is indefinite and allows the foreigner multiple enters. The minimum capital required to apply for this type of visa is US $100,000. Those partners/shareholders that do not appear in person must execute a power of attorney which, in the case of foreign individuals or companies, must be properly certified by a Notary Public in the country of origin. It is important to note that this does not imply that the investor will be required to file income tax returns in Colombia.

In order to promote new investments and the expansion of existing ones in the national territory, the investment Stability Law (Law 963 of 2005) for investors in Colombia was signed in July of 2005. This law is aimed at improving the stability of the rules of the game for domestic and foreign investors. The Stability Law guarantees that certain rules in force at the time the contract was signed will continue to apply for the duration of the contract, which can be of up to 20 years.

According to the World Bank, Colombia is Latin America’s “top reformer,” and “has made great strides.” An important step in the reform process was law 962, known as the “Anti-Red Tape Law” (Ley Antitrámites). The law eliminated a number of bureaucratic processes and prevented government agencies from creating new ones.

The National Government grants a 30-year income tax exemption period for investments in construction of new hotels. Currently, Tourism Zona Francas are being developed. They consist of areas of at least 50 hectares aimed at promoting and developing the provision of tourism services. The Zona Francas amongst many other offer tax free imports of equipment and other for construction and operation of the tourist facility.

Finally, there is a significant difference in the cost of construction in Colombia which translates to much cheaper Luxury Condo/Hotel units than most places in the world. The reason being, workers’ wages in Colombia can be as little as 10% of the cost per hour as in other countries. Labor cost is normally one half or more of the construction costs.

Santa Marta has an excellent International reputation and the climate is right for major investments in Colombian tourism.